Obama Throws Lifeline to Homeowners

Obama Throws Lifeline to Homeowners

Published February 19, 2009

Continuing his whirlwind pace to rescue America from the worst economic crisis in recent history, President Barack Obama announced a $75 billion plan Wednesday to provide relief to struggling homeowners.

The dramatic proposal, which is a whopping $25 billion more than the administration had hinted earlier, could keep some 9 million American homeowners from going under, Obama says. And, the president says, the nation as a whole will benefit.

"All of us are paying a price for this home mortgage crisis, and all of us will pay an even steeper price if we allow this crisis to continue to deepen," Obama said.

The announcement came a day after Obama signed his $787 billion emergency stimulus plan, designed to trigger job growth while making the nation less reliant on foreign fuel and refurbishing its crumbling infrastructure.

Under the housing plan, refinancing restrictions will be relaxed for many borrowers and lenders will receive incentives for restructuring troubled loans.